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Mean Squared Error (MSE): \[\text{MSE} = \frac{\text{SSE}}{n-p} = \frac{\sum_{i=1}^n (y_i - \hat{y}_i)^2}{n-p}\]
Simple Linear Regression: \(y = \beta_0 + \beta_1 x + \varepsilon\)
Multiple Regression: \(y = \beta_0 + \beta_1 x_1 + \beta_2 x_2 + \varepsilon\)
Given the regression: \(\text{Salary} = 40000 + 2000 \times \text{YearsExperience} + 5000 \times \text{HasDegree}\)
Where HasDegree = 1 if person has degree, 0 otherwise
Interpret each coefficient:
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teengamb dataset from the faraway package,lm function